By FAY SIMMONS
Tribune Business Reporter
The Bahamas Chamber of Commerce & Employers Confederation (BCCEC) yesterday acknowledged that Amazon’s ‘free delivery’ move poses an “imminent threat” to the survival of several local industries.
The private sector body, in a statement, urged Bahamian shipping and freight companies to innovate in response to the competitive threat posed by the world’s largest online retailer and e-commerce marketplace offering free delivery to this nation on all purchases of “eligible products” worth $49 or more.
And it also called on local retailers to consider how they can diversify their offerings, and digitise products and services, to meet consumers in an increasingly digital and online world. “Indeed, with this new initiative from Amazon, there is an imminent threat to the market share and continuity of a variety of sectors,” said the Chamber in a statement.
“It begs the following considerations: How should local retailers respond to this threat? Should they set up a store on Amazon to fulfill local orders? Given the major advantage of online shopping, are more retailers pushing to get their businesses online, truly diversifying and digitising their products and services to serve the modern buying public?”
The Chamber also questioned how Amazon’s competitive pricing will be impacted by the Trump administration’s potential new and increased tariff proposals, and if this will create an opportunity for Bahamian retailers to import goods directly from China, South America, Africa and other global markets at more competitive prices.
“BCCEC has been working closely with the Trade Commission to launch the Trade Diversification Programme, and Bahamas Bureau for Standards and Quality (BBSQ) for quality control, to provide access to alternative markets to improve our competitiveness and combat the inflation we have seen over recent years, which may be viable options considering these developments,” said the Chamber.
It added that Amazon is only offering a streamlined list of products for free delivery to The Bahamas, while delivery times for the new ‘free delivery’ option may be longer than those provided through local courier companies. Shipping companies were encouraged to capitalise on providing shorter delivery times, and work to collaborate with Amazon to establish shipping hubs.
“We note, even if only initially, that there is a streamlined list of products available for the free shipment method, perhaps as an introduction to the local market,” said the Chamber.
“Anecdotal evidence suggests extended estimated delivery times with the free local shipment option. This provides the opportunity for local couriers to capitalise on procurement and importation of the goods, offering much shorter delivery timeframes not presently available for the free shipping option, while strategising for collaboration with Amazon as alternative shipping hubs with their local offices as well.”
The Chamber encouraged merchants to improve their competitiveness by implementing initiatives that benefit consumers, such as loyalty programmes and bulk discounts, to incentivise consumers to shop locally.
“For the retail market, customers have the benefit of instant gratification through real time purchasing power without incurring lengthy delays to receive goods and services required. There will inevitably be clients that still opt for delayed fulfillment of their retail needs should the price and specificity be met,” said the Chamber.
“The BCCEC encourages the impacted business community to be creative in the way they market and incentivise clients to continue patronising their businesses despite this new avenue, even as they work to move their business online.
“Initiatives like loyalty programme, bulk discounts and concierge services would help in retaining market share as customers still chase convenience. This may also entail rate adjustments and customer service enhancements to ensure competitiveness in the refined market.
“Marketing campaigns that promote the features and benefits of their products and services, while encouraging and incentivising consumers to buy locally, is a part of the battle won.” The Chamber also encouraged shipping companies to form an association that can represent their views and help solve industry-related issues.
“Moreover, we strongly recommend that local couriers form an association to better foster the solidarity needed to address challenges like these that may arise. Together, their collective efforts would yield the best results for the industry,” said the Chamber.
“BCCEC would be pleased to assist with this process should there be shared desire among the local companies. As the voice of the business community, BCCEC has begun our initial assessment of the landscape and potential partnerships while working with the local couriers and retailers to chart the course ahead. We will continue to monitor this situation to ensure that we are in the best position to assist our members adjust their strategy to this new threat.”
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Publish date : 2024-11-12 07:31:00
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